Hedge funds that built major short positions against UK supermarkets at the start of the coronavirus lockdown have seen their bets go awry as share prices in the sector remained resilient.
Hedge funds have emerged as the top pick among asset allocators heading into the second half of 2020, outflanking other products such as private equity and real estate as investors’ asset-class-of-choice, according to new data from Credit Suisse, which showed hedge funds have met or exceeded the expectations of some two-thirds of investors so far in 2020.
Hedge funds that bet against Wirecard, the German e-payments firm which last week collapsed amid an apparent widespread EUR1.9 billion fraud, showed “bravery and belief” and their actions have ultimately been vindicated, according to Jack Inglis, CEO of the Alternative Investment Management Association.
A number of hedge fund short-sellers look set to gain from troubled shopping centre operator Intu Properties’ fall from grace, with shares in the London-based real estate investment trust sliding again on Friday (26 June) following news that the debt-laden firm is due to enter administration.
Hedge funds are holding off from closing their short positions in crisis-hit e-payments firm Wirecard AG - with some even increasing their bets – in expectation that its share price will tumble yet again, boosting short sellers’ returns even further.
Global hedge fund adviser Sussex Partners has launched Strategic Certificates on the Sussex Partners Diversified Alpha Index issued and administered by Vontobel in both EUR and USD.
With long-term volatility likely to remain at elevated levels, the LFIS Vision UCITS – Perspective Fund is primed to capitalise on opportunities in rangy equity markets.
Alpha Blue Ocean, the London-based alternative credit investor, is eyeing growing funding opportunities arising out of the sharp economic downturn following the coronavirus outbreak.
As global investment markets became more efficient and persistent low interest rates saw returns dry up, institutional investors have been turning to alternative assets in their efforts to generate performance. Since traditional hedge fund investments have often not fully lived up to their promises in the past decade, managers in the space are looking to offer access to other alternative assets, such as private capital, in their attempts to fulfil investors’ needs.
The current market uncertainty and value discrepancy offers the biggest opportunity in volatility-based trading in a generation, according to Jerry Haworth (pictured), the chief investment officer of London-based 36 South Capital Advisors, who is preparing a new fund to capitalise on further volatility shocks up ahead.